The rupee on Thursday lost 13 paise to close at 66.85 against the US currency on fresh demand for the dollar from banks and exporters.
The US dollar turned expensive against a basket of global currencies which hit the rupee sentiment, a dealer said.
The rupee opened lower at 66.81 a dollar against the last closing level of 66.72 to a dollar at the Inter-bank Foreign Exchange (Forex) market.
The domestic unit hovered in the range of 66.91 and 66.81 a dollar during the day before closing at 66.85 a dollar.